9 Things You Need To Know About Cryptocurrency

The online currency that people can use to buy online products is called Cryptocurrency. Cryptocurrency improves ways to secure online transactions. Any financial institute does not govern these digital currencies. The purpose of Cryptocurrency is to trade for profit. Depending upon the interest of the traders, the price of this currency can go up in few days. The common example of Cryptocurrency is Bitcoin. The price of Bitcoins was reaching the sky in April of this year ($65,000). However, the current value of this Cryptocurrency is approximately $45000. This article by researchers of a UK dissertation help firm aims to highlight ten important things you need to know about Cryptocurrency.

Ten Things You Need To Know While Talking About Cryptocurrency

1. Types of Cryptocurrency

People often ask: ‘Is bitcoin the only cryptocurrency available in Tarde market?’ The answer to this common question is ‘No’. About 10,000 types are available in the market as cited by ‘CoinMarketCap.com’, official website. The number of Cryptocurrency, especially ICO’s (Initial Coin Offering), is increasing exponentially. According to data provided by CoinMarketCap.com, the estimated value of all types of Cryptocurrency is 1.9 trillion US dollars to 2.2 trillion US dollars (calculated in Aug 2021). At the same time, the value of Bitcoin (the most popular Cryptocurrency) reached 849 billion US dollars. Figure 1 shows the ten most popular cryptocurrencies, their symbols, price and circulatory supply.

Cryptocurrencies of the World

Figure 1: Ten most popular Cryptocurrencies of the World.

2. Background of Cryptocurrency

Cryptocurrency is used to transect eCash anywhere in the world. An American in 1983 first gave the concept of the eCash system. In 1995, the same American developed cryptography to enhance the confidentiality of cash transactions. eCash or digital cash has been used since 1983, but the term ‘cryptocurrency’ was assigned to this online currency in 1998.

3. What makes Cryptocurrency popular?

An important thing that you all must know is what makes Cryptocurrency popular among people. The following points will give you an answer to this question.
  • From the last few decades, it has been seen that the value of Cryptocurrency such as bitcoin is increasing exponentially. That is why most people start considering it the currency of their future.
  • People spend money on Cryptocurrency because they think that its value will increase in the next few days.
  • Some people encourage cryptocurrencies because of their technology, like blockchain. The decentralised and recording technology behind Cryptocurrency makes it more secure than any other payment process.

4. An opportunity for future investment

Some people think that Cryptocurrency is the best place to invest excess money, while others think that it is just a scam. Because you will only get profit when someone else pays more than you paid for the currency. Cryptocurrency fails to generate cash flow or profit like real money did. It is often considered as the Greater fool theory of investment. Hence, it is not as beneficial for others who don’t know much about it.

5. Cryptocurrency is unstable

Cryptocurrency is unstable
Before purchasing any good, the buyer should know about the value of his currency in the foreign exchange market. Knowledge about the price and stability of any currency is vital. However, in bitcoin and other Cryptocurrency, the value is very unstable, and no one can predict how much it will cost at the end of this year. For example, in December 2017, the value of bitcoin was 20,000 US dollars, but at the end of the next year, its value decreased up to 32,00 US dollars. However, in December 2020, the value of Bitcoin was recorded as very high than expected. These uncertainties in the price of bitcoin make it less viable than any actual currency in the world.

6. Cryptocurrency legal or not?

Research by a dissertation writing service shows that another common question about Cryptocurrency is whether Cryptocurrency is legal or not? People of today are much curious to find ways to secure their money and online transactions. To make their money secure, they opt for Cryptocurrency, especially bitcoin. Cryptocurrency is illegal in some countries such as Bahrain, China, Iran, Russia, Saudi Arabia and Turkey. Countries that allow trade-in cryptocurrency include Australia, Cayman Islands, Bulgaria, Barbados, Antigua and Barbuda, Finland, Germany, Indonesia and many others. However, The Republic of Macedonia, Ghana, Vanuatu, Nepal, Bangladesh, Dominican Republic and many others are thinking to adopt Cryptocurrency for secure online transactions.

7. Ways to buy Cryptocurrency

Most people are not well aware of the means to buy Cryptocurrency, and often fraudsters make them fooled. In some cases, you are allowed to buy Cryptocurrency in US dollars, while in other cases, you are restricted to buy them in other Cryptocurrencies or Bitcoins. In addition, you must have an 'online Wallet' to hold your currency in it.

The steps to buying a cryptocurrency are:

1. Go to online apps.
2. Create an account for currency exchange.
3. Then apply to change your dollars into Cryptocurrency.

eToro, Sofi Active, Robinhood, Tradestation are among a few of the online brokers that allow you to change your real money into Cryptocurrency of your choice.

8. Important terms you should know entering the world of online trading.

Following are few terms a beginner should google before entering the world of foreign exchange.

1. Altcoin
2. Bitcoin
3. Bitcoin Cash
4. Block
5. Blockchain
6. Coin
7. Coin base
8. Cold wallet
9. Cold Storage
10. Decentralised Finance
11. Ethereum
12. Digit Cold
13. Decentralised Apps
14. Genesis Block
15. Hot Wallet
16. Initial Coin Offering
17. Vitalik Buterin.

The conceptual understanding of these terms can save an investor from the fraudster.

9. Few Things That Can Protect You From Fraud

cryptocurrency Fraud
Read the fine print of the company carefully. This will provide you with information about the owner of the company and the names of renowned investors involved in trading with the company. It can also reveal whether the currency you will opt for is a developed Cryptocurrency or the company will develop it from your investment. Finally, learning the company's prospectus will provide you with all the necessary information you need to know about the company.

The final thought on Cryptocurrency is that it is one of the most secured system of the online transactions.

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